Question: need help 4. State whether the ERC (as an absolute value) for each of the following situations would be above 1, 1, or 0. Briefly

need help

4. State whether the ERC (as an absolute value) for each of the following situations would be above 1, 1, or 0. Briefly explain your reasoning for each answer, with reference to course concepts. Each situation is independent; assume no tax effects. (4 marks) (a) A change in inventory policy from weighted average to FIFO resulted in a decrease in COGS and an increase in earnings above expectations for ABC Inc. (b) Positive unexpected earnings largely due to a significant tax refund after winning a tax court case against Revenue Canada

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